In this blooming era of increased well-being, both mentally and physically, people are exploring alternative natural remedies to improve, maintain and/or treat health problems. Due to this, the herbal supplement market has quickly blossomed into a billion-dollar industry. An herbal supplement contains one or more herbs, that are part of a plant(s) that are used to help maintain health or treat a variety of medical problems. Many herbs have a long history of claimed health benefits that many deem as safer than prescription medication. They may be sold in a variety of different configurations such as capsules, tablets, gel caps, powders, liquids, or tea.
In the United States, herbal supplements are regulated by the Food and Drug Administration (FDA) as foods not drugs. Due to this, they do not have to meet the same standards as prescription medications and over-the-counter medications for proof of protection, potency, effectiveness, and what the FDA calls “Good Manufacturing Practices”. This means that there is very little regulation of the manufacturing or content of these substances. According to the FDA, “Dietary supplements are not intended to treat, diagnose, cure, or alleviate the effects of diseases.” The manufacturers of the supplements are the ones that are responsible for ensuring that the claims they make about their products aren’t misleading or untrue and that they are backed up by satisfactory evidence.
Many herbal supplements are not closely regulated by the FDA. This does not help when vendors of these products are trying to obtain legit payment processing sources. Some herbal supplements like Kratom, Kava, Kanna, Blue Lotus, and CBD are heavily scrutinized by banks and processors due to their perceived ‘gray area’ status. Although these herbal supplements are legal in most or all 50 states, merchants may find it challenging to acquire the payment processing services they desire. Another reason that these businesses may find it hard to be approved for payment services include a potential for a high rate of ‘chargebacks’. This is often due to customers not receiving the expected advertised results from the product. Another hurdle is when customers are enrolled in a monthly subscription program and after time either forget or are unaware that they will have continuing monthly payments. Monthly recurring billing is popular with the nutraceutical and herbal supplement industries. For merchants, chargebacks can be damaging and ultimately can cause merchant’s processing accounts to be closed. High number of chargebacks can also prevent merchants from being able to obtain new processing solutions. For these reasons, the herbal supplement industry has become viewed by many processors as high risk.
This is where Performance Card Service can help! We have a large portfolio of US and international providers in credit card, eCheck, and crypto currency processing that will support various herbal supplement products. Our partners understand the volatile but also lucrative nature of your industry. Please contact us today for a free consultation to see how we can help you get setup to take payment for your herbal supplement business.